Is it possible? And, if a person did receive a work permit while on a type 'o' visa, would this person still have to do 90 day visa runs?

A work permit can be issued to a non immigrant O visa holder, such as those having a Thai wife, but a work permit does not change the requirement for new entry every 90 days if using visa entry stays. Only it you obtain an extension of stay would you not have to leave. And that could be obtained on the basis of work or if married on that basis by meeting the respective requirements.